Credit card chatbots: How they can help you track and manage your spending

With the rapid progress of digitisation, credit cards have evolved significantly. Recent advancements in the credit card space include features like contactless payments, virtual cards, and mobile wallets. One such innovation is the introduction of chatbots for credit cards. Like other innovations, chatbots aim to simplify and make your payments easier.

What are chatbots?

Chatbots are personalised chatboxes created by artificial intelligence (AI) to answer users' queries. They are digital assistants that use natural language processing (NLP) and machine learning to understand customer queries and perform tasks.

Functions of a chatbot

1. Interactive

Chatbots use automated voice response systems to provide users with an interactive experience. They simulate conversations, offering credit card users a human-like interaction. If the chatbot cannot answer a question, it redirects the user to customer care for additional assistance. Additionally, in some cases, chatbots make verification calls when unusually large transactions are made using a credit card.

2. Answer questions
Chatbots make it simpler to access information. The information available online may be overwhelming for some people. Chatbots help to narrow down information available online and help to answer your queries accurately. When you open your credit card issuing website, a chatbox opens mostly at the right-hand corner of the website. You just have to type your question, and the chatbox will answer using AI. This helps reduce the time taken to navigate through the website to find the right information.

3. Payments

Few credit card issuers give you the option of making payments through chatbots. It tries to make the payment process simple and accessible to users. It also compiles various offers and helps you choose the perfect one. It avoids the effort to choose the right offer for your transactions.

4. Access to financial products

Chatbots help you choose the correct financial tool for your transactions. It also provides instructions on how to apply for credit cards or related transactions. In accordance with your needs, it suggests the best financial tool to make payments.

Chatbots have certain disadvantages too

1. Lack of intelligence: Chatbots imitate human intelligence. However, they do not have the understanding to resolve complex issues. They are mostly trained to tackle easy and repetitive issues.
2. Contextual information: Chatbots provide very tailor-made information. They often do not understand the context of a question. They usually pick up keywords and answer according to their programming, which might lead to misinformation and inaccuracy.
3. Privacy concerns: Chatbots collect personal and sensitive data from users, which can lead to data leakage and security concerns for credit card users. In conclusion, chatbots are changing the way customers approach financial tasks. They make transactions easier and more convenient. However, customers must also remember to verify every piece of information chatbots provide to avoid inaccuracy.